Seizure of stored goods upheld where unlawful transport, under-invoicing and defective documents bring them within warehouse search powers.

Goods transported in contravention of the prescribed restrictions under the West Bengal Sales Tax Act and Rules may be verified and seized even after unloading into a godown. Reading section 69 with rule 212, the authority's power extends beyond goods physically on a vehicle where improper documentation, undervaluation or under-invoicing accompanies the transport. Section 69(b) separately permits search of a warehouse or other place where such goods are stored. On that construction, goods derived from unlawful transport do not escape seizure merely because they are kept in storage, and seizure from the godown was upheld.

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Issues: Whether goods stored in a godown could be seized for under-invoicing under sections 68, 69 and 70(2) of the West Bengal Sales Tax Act, 1994 read with rule 212 of the West Bengal Sales Tax Rules, 1995.

Analysis: The statutory scheme in chapter XV regulates transport of goods and authorises interception, verification and seizure where goods are transported in contravention of the prescribed restrictions. Rule 212(9) and 212(10) were read with section 69 to hold that the authority may verify the correctness of the way bill and connected documents in respect of goods being transported, and section 69(b) separately permits search of a warehouse or other place where goods transported in contravention of section 68 are stored. The Court held that the expression used in the rule does not confine the power merely to goods physically on the road vehicle when the transportation is linked to improper documentation and undervaluation, and that stored goods derived from illegal transport do not escape seizure merely because they have been unloaded in a godown.

Conclusion: The seizure of the goods from the godown was within the statutory power and the challenge to the seizure failed.

Ratio Decidendi: Where goods transported in contravention of the prescribed restrictions are stored in a warehouse or godown, the authority may verify the relevant documents and seize the goods under the combined operation of section 69 and rule 212, including seizure for undervaluation or under-invoicing.

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